REG - Phoenix SpreeDeutsch - Condominium sales and business update

Phoenix Spree DeutschlandAnnouncement

06/11/2024 07:00

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RNS Number : 0541L  Phoenix Spree Deutschland Limited  06 November 2024

6 November 2024

 

Phoenix Spree Deutschland Limited
(the "Company" or "PSD")

 

Business update

 

UPDATE ON CONDOMINIUM SALES, APPOINTMENT OF CONDOMINIUM BROKERS AND AGREEMENT
WITH TERMIOS.

 

 

Phoenix Spree Deutschland (LSE: PSDL.LN), the specialist investor in Berlin
residential real estate, provides an update on condominium sales, including
progress on its proposed accelerated condominium sales strategy and plans to
test and install heating optimisation systems for PRS buildings.

 

Condominium sales momentum continues

 

As previously announced, condominium sales during first half of the financial
year showed a marked improvement, with fifteen units notarised for sale for an
aggregate value of €5.3 million in H1 2024. Positive momentum has continued
and, since the half-year end, a further ten units, with a combined value of
€4.0 million have been either notarised or reserved for sale. Sales in the
second half include the highest value apartment sold by PSD, a newly
constructed attic apartment which was sold in a bare shell condition for
€950,000 or €4,720 per sqm.

Year-to-date, condominiums have been notarised at an average price of €4,122
per sqm. This represents a 19 per cent premium to the H1 2024 JLL Portfolio
valuation and a 52 per cent premium to the Portfolio value per sqm implied by
the share price as at 5 November 2024. Vacant condominiums have been notarised
at an average premium of 31 per cent to the H1 2024 Portfolio valuation and a
68 per cent premium to the Portfolio value implied by the share price as at 5
November 2024.

Appointment of two leading condominium sales brokers

 

Plans to significantly increase the number of condominiums that can be made
available for sale in the future are nearing completion. The Company is
pleased to announce that it has concluded negotiations with two leading
condominium sales platforms Engel & Völkers and Lübke Kelber to work
alongside QSix's existing sales platform, IWA. These platforms will
significantly broaden market reach, including internationally, of PSD's
existing condominium sales and marketing activities.

 

Framework agreement reached to test and install heating optimisation systems

 

The Company has entered into a framework agreement with termios.Pro
("termios"), a leading provider of green solutions for heating, sustainability
and ESG for residential properties, to test and supply heating optimisation
systems. Termios is a part owned by LEG Immobilien SE and, under the terms of
the framework agreement, a pilot will be established. If the testing phase is
successful, the Company will consider entering a formal contractional
agreement, with roll-out across a substantial part of the PRS portfolio
thereafter.

 

The termios system operates by utilising smart thermostats which, once
installed, automatically regulate the hydraulic balancing of the heating
system for individual radiators within units and enable intelligent control of
heating energy through further smart energy saving features. Initial tests
previously undertaken by termios in similar Altbau buildings have indicated
that energy savings of up to 20 per cent in total may be achievable.

 

Energy focused capex is expected to increase property values, reduce
operational costs and potentially lead to more favourable long-term financing
options. By enhancing the energy efficiency of buildings, the Company expects
to broaden the pool of prospective buyers, including pension funds and
insurance companies, as market conditions improve.

 

Portfolio sale negotiations at an advanced stage

 

The Company has previously announced that it is in advanced negotiations to
sell a portfolio of 16 buildings rented on a PRS basis. Further details on the
terms of this transaction will be announced as and when it becomes
unconditional.

 

 

 

For further information, please
contact:

 Phoenix Spree Deutschland Limited                                                               +44 (0)20 3937 8760

 Stuart
 Young

 Deutsche Numis (Corporate Broker)                                                               +44 (0)20 3100 2222

 David Benda

 Teneo (Financial PR)                                                                            +44 (0)20 7353 4200

Lizzie Snow / Annushka Shivnani

 

Notes to Editors:

 

About Phoenix Spree Deutschland

Founded in 2007 and listed on the London Stock Exchange in 2015, Phoenix Spree
is a long-term investor in Berlin's residential, mid-market rental property.
QSix Residential Limited acts as our Property Advisor, carrying out the
day-to-day operations of the Company. It has an experienced team of property
professionals with long-standing experience of the German residential property
market.

 

About termios

Termios is a joint venture founded in 2023 by the Munich-based business
builder mantro GmbH, the Sauerland family-owned fittings manufacturer Oventrop
and the Düsseldorf-based LEG Immobilien SE. The company specialises in the
development of green solutions for heating, sustainability and ESG for
residential properties. It provides efficient energy optimization for
residential buildings through heating control and hydraulics as well as
digitization and technology services.

 

 

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